Last week, I briefly touched on the idea of Bitcoin inciting a speculative attack on fiat currencies in an issue that brought you freaks the news about MicroStrategy's bitcoin allocation six days before it officially dropped today. I wanted to circle back and elaborate on the subject.
As you may be able to tell from the tweet linked above, I believe we are beginning to transition out of the "slow bleed" phase of bitcoin adoption into the "currency crises" phase. In short, bitcoin adoption to date has happened via a slow bleed of steady waves of interest that have come and gone over the first eleven years of its existence. Each wave brings with it new high water marks in terms of the price floor and the amount of individuals who own and hold bitcoin. I believe these waves are about to get much larger and much stickier as we move forward in time. As is evidenced by the news of MicroStrategy buying 21,454 BTC to diversify away from the dollar; individuals and companies with big pockets have arrived. Bitcoin is becoming less and less taboo in the eyes of the mainstream. It is becoming more socially acceptable to be accepting of Bitcoin. The man who decided to buy 21,454 BTC for the company he is in charge of was highly skeptical of Bitcoin not that long ago.
The pivot from "Bitcoin's days are numbered" to "Bitcoin is my company's Primary Treasury Reserve Asset" is a big one, and Michael Saylor won't be the last individual to be making the pivot. You see freaks, all Bitcoin needs to do to ensure continued success is survive. As the waves of price and new adoption have washed over the Bitcoin market since January 2009 they have brought with them believers and haters alike.
Most of the haters decide to swim back to shore after they participate in one of these waves crashing. Some of the other haters, like Michael Saylor, change their views and decide to paddle out beyond the break so they can ride the next wave and profit from it. This happens as they witness Bitcoin's ability to remain a functioning distributed peer-to-peer digital cash system in the face heavy backlash. This will only happen at a quicker pace and with more ferocity as it becomes more obvious that Bitcoin isn't going anywhere and more market participants begin to position themselves for the next wave of adoption. [sick surfing reference, bruh]
This is not the only thing that has convinced me that we are witnessing a transition into a new stage of Bitcoin adoption. As we transition into the "currency crises" phase of adoption one would expect to see the price of bitcoin skyrocketing in countries that have weaker currencies. Well, that seems to be happening as we congregate in this dark corner of the Internet.
Since the last all time high in price was reached in December of 2017, bitcoin has fallen and surpassed that all time high when priced in Argentine pesos, Turkish lira, or the Brazilian real. Each currency has experienced high inflation over the last three years and Bitcoin has increased in price significantly as a result. More of this should be expected moving forward as central banks around the world remain steadfast in their belief that they can print money ex-nihilo into perpetuity without any material consequences.
Right now, weak currencies are hyperinflating in bitcoin terms. Soon enough, Bitcoin will be further up the ladder of currency dominance and will begin devouring more reputable currencies like the South African rand and the euro. The forces that will bring this to fruition are already in motion. More and more individuals and businesses are beginning to put their faith in Bitcoin. Resistance is futile and this will become very apparent as we continue to transition into the "currency crises" phase of bitcoin adoption.
One time, in high school, I didn't hand in my homework and lazily put my name on someone else's who had forgotten to write their name on it. Teacher could tell right away it wasn't mine. One-day suspension. That's what you get for cutting corners, Marty.